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Companions at BDO have elected Mark Shaw to steer the UK’s fifth-largest accounting agency in a shock win for the agency’s head of enterprise restructuring.
The mid-tier accounting and advisory agency mentioned on Wednesday that Shaw, who has not but served on BDO’s management crew, will succeed Paul Eagland as managing associate in October.
Scott Knight, the agency’s head of audit and assurance, was seen as a favorite internally to succeed Eagland, in accordance with a number of folks conversant in the matter. Nonetheless, it was introduced to companions at a gathering on Tuesday that Shaw had triumphed in a five-candidate race.
BDO has expanded quickly in recent times, significantly in its audit follow led by Knight, however has additionally attracted growing scrutiny from regulators.
The agency has been essentially the most profitable of the mid-tier accounting companies in profitable extra enterprise amongst FTSE 350 firms in recent times, however in its annual assessment of audit high quality final yr, the UK’s accounting watchdog criticised BDO for “unacceptable” shortcomings in its audit work.
One associate mentioned that Shaw’s pitch was to “go for progress, however go for managed progress”, including that he made an “emotional connection” with companions by emphasising the significance of BDO’s heritage and its partnership mannequin — a possible sign that he wouldn’t search to observe BDO’s US agency, which final yr agreed a $1.3bn debt take care of personal fairness agency Apollo.
“He got here throughout as presidential however on the identical time extraordinarily respectful of the agency and its tradition,” the associate mentioned.
Beneath Eagland, revenues at BDO jumped from £405mn in 2016 to £935mn in its most up-to-date set of economic outcomes. Companion numbers additionally elevated from 244 to 441 throughout his tenure, whereas complete headcount grew from about 3,000 to 7,500.
Through the Covid-19 pandemic, the agency additionally furloughed 700 employees, not like its rivals, and initially determined to not repay the £4.1mn in taxpayer help, however reversed its resolution following a public backlash.
Eagland will stay in publish till the top of September and can work with Shaw to make sure a clean transition, the agency mentioned.
The succession comes at a turbulent time for the broader skilled companies trade, with lots of BDO’s rivals compelled to chop jobs in current months amid a slowdown within the advisory market. The adoption of synthetic intelligence inside the trade can also be in its infancy.
Shaw, who has been a associate at BDO since 2006 and has served on the agency’s advisory govt, mentioned: “We have now a lot to be happy with from our journey to as we speak, as a close to £1bn UK agency. This can be a time to construct on our heritage, while seeking to our future.
“I look ahead to working with our proficient companions and colleagues to attain balanced progress over the approaching years, which places serving the general public curiosity, doing the appropriate factor, tradition and wellbeing at its coronary heart.”
Eagland mentioned: “I’ve each confidence that, beneath Mark’s management, the agency and its 7,500 folks will proceed to develop and succeed.”
Companions at BDO had been paid a median of £609,000 within the agency’s final monetary yr, a 6 per cent drop on the earlier yr.
